MANILA -- Amid extraordinary security and large crowds
that forced schedule delays, US President George W. Bush thanked the Philippines
on Saturday for standing alongside American forces in Iraq and promised to help
the nation defeat terrorism by modernising its under-equipped military.

'Murder has no home in any religious faith and these
terrorists must find no home in the Philippines,' Mr Bush said to enthusiastic
applause at a joint session of the Philippines Congress.

He and Philippine President Gloria Macapagal Arroyo agreed to
beef up their military partnership, including an intensified effort to help
defeat Al-Qaeda-linked militant extremist groups that operate in the islands.

Mr Bush's visit was an abbreviated one due to security
concerns. Air Force One was escorted by a pair of US fighter jets that flew so
close the pilots' faces were clearly visible from the presidential aircraft.

The president's speech before the Congress was nearly an hour
late because of large crowds - both supporters and protesters - on his motorcade
route.

Outside the House of Representatives building, up to 4,000
protesters gathered, burning an effigy and five flags as Mr Bush's motorcade
passed. Demonstrators had earlier marched from a university campus waving
anti-US placards and streamers saying 'Ban Bush' and 'Bush No. 1 terrorist'.

Seven legislators walked out of the hall at the start of Mr
Bush's speech.

The President gave no sign he had noticed them or the
demonstrators. Instead, he made a point of thanking all those who 'lined the
streets' in welcome. 'It warmed our hearts,' he told the Congress.

Mr Bush described the US-Philippines military alliance in the
war on terror as 'a rock of stability in the Pacific'.

Mrs Arroyo was an early backer of US policy both in Iraq and
in the broader war on terrorism. The Philippines has sent about 100 soldiers,
police and health workers to Iraq.

The United States has worked closely to modernise the
113,000-member Philippine military and has sent advisers to help the military
battle terrorist activity in the south.

During an earlier picture-taking session with Mrs Arroyo, Mr
Bush hailed the recent killing of an Abu Sayyaf leader and the capture of others
a 'success' and called it 'a model for the region'.

He called Mrs Arroyo a 'strong and stalwart leader'.

Mrs Arroyo thanked Mr Bush for American security assistance.
'We must close ranks and stand firm against terrorist threats, however grave,'
she said.

Mr Bush was the first US president to address the Philippine
Congress since Dwight Eisenhower in 1960.

Scheduled to spend no more than eight hours in Manila, Mr
Bush rushed through the talks with Mrs Arroyo, the speech to Congress and then
planned to attend a formal state dinner before flying on to Thailand.